Summary
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Details
- Switzerland
Public companies, banks, and insurance companies with 500 or more workers and either at least CHF 20 million in total assets or more than CHF 40 million in turnover.
Deep dive
Introduction
Switzerland's Ordinance on Climate Disclosures, enacted by the Federal Council and effective from January 1, 2024, mandates large companies to publicly report climate-related information. This ordinance implements the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), aiming to enhance transparency regarding the climate impact of business activities and associated financial risks. It aligns with Switzerland's broader climate policies, including the CO2 Act and the Federal Act on Climate Protection Targets, Innovation, and Strengthening Energy Security, which collectively target net-zero greenhouse gas emissions by 2050. The ordinance is overseen by the Federal Office for the Environment (FOEN) and the State Secretariat for International Finance (SIF).
Reporting Requirements
Under Switzerland's Ordinance on Climate Disclosures, effective from January 1, 2024, companies are mandated to publicly report their greenhouse gas (GHG) emissions, encompassing both direct (Scope 1) and indirect (Scope 2 and 3) emissions. They must set specific reduction targets for these emissions and outline the strategies and measures planned to achieve them. Beyond emissions data, companies are also required to disclose the financial risks they face due to climate-related activities and the impact of their operations on the climate. These disclosures should adhere to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations, ensuring transparency and comparability across organizations. Companies should integrate their climate disclosures into the broader non-financial report required under Articles 964a–964c of the Swiss Code of Obligations. The reports must be made available in both human-readable (e.g., PDF) and machine-readable (e.g., XBRL) formats on the company's website.
Penalties for Noncompliance
The fines associated with Switzerland's Ordinance on Climate Disclosures are stipulated in Article 325ter of the Swiss Criminal Code. This provision outlines that individuals who intentionally fail to comply with non-financial reporting obligations, including climate disclosures, or who provide false information in such reports, may be fined up to CHF 100,000. In cases of negligence, the fine can be up to CHF 50,000. These penalties apply to responsible parties within companies, such as board members or executives, who are accountable for ensuring accurate and timely reporting.
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